Retail stablecoin trading in Hong Kong not allowed yet, official says

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As Hong Kong progresses with the adoption of cryptocurrency buying and selling for particular person buyers, a neighborhood official burdened that retail stablecoin buying and selling isn’t but allowed.

Hong Kong has not adopted laws for stablecoins like Tether (USDT) or USD Coin (USDC), which implies retail buyers will not be allowed to commerce these property, in accordance with Hong Kong’s Secretary for Monetary Providers and the Treasury, Christian Hui.

The official supplied remarks on cryptocurrency regulation in Hong Kong throughout a web based funding committee assembly on Oct. 6, the native information company Ming Pao reported.

Cryptocurrency service suppliers have been broadly utilizing stablecoins like USDT as a serious buying and selling asset as a result of their worth is designed to be stabilized by the peg to United States {dollars} or property like gold, Hui stated. Nevertheless, some stablecoins have confronted severe volatility points and even collapsed previously, the secretary famous, including that reserve administration of stablecoins extremely impacts the worth stability of buyers’ rights to redeem fiat currencies.

Contemplating these dangers, retail buying and selling of stablecoins won’t be allowed till Hong Kong formally regulates stablecoins, Hui reportedly declared.

Hui additionally talked about that the shuttered native crypto trade JPEX — which was allegedly selling its providers within the area and not using a license — was concerned in a severe fraud case, reflecting the necessity for increased supervision of the cryptocurrency market.

Cointelegraph has reached out to Hong Kong’s Securities and Futures Fee to ask about stablecoin buying and selling guidelines within the nation. This text can be up to date pending new info from the regulator.

Associated: Hong Kong police get well $11M value of property in JPEX case: Report

JPEX halted sure providers on its platform as of mid-September 2023, citing a liquidity disaster triggered by “unfair remedy” from sure establishments in Hong Kong. JPEX shortly grew to become the middle of a serious scandal within the business, with Hong Kong authorities launching an investigation after receiving greater than 2,000 complaints from JPEX customers reporting practically $180 million in losses.

The JPEX case got here just a few weeks after Hong Kong regulators formally allowed retail buyers to commerce cryptocurrencies like Bitcoin (BTC) in early August 2023. The Hong Kong Financial Authority is predicted to introduce regulatory tips for the stablecoin market by the tip of 2024.

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Retail stablecoin trading in Hong Kong not allowed yet, official says

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